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Point-to-point inflation in Bangladesh hit a 17-month high at 6.22 per cent in March in a jump over government-set limit, officials said Tuesday, as prices of essentials spiked through declared and clandestine hikes.
After the last highest-record rate of 6.44 per cent measured officially in October 2020-when the coronavirus pandemic was upending normal order--the consumer price index (CPI) was maintaining comparatively lower rate, below 6.0 per cent.
An FE analysis finds that the CPI in the rural areas aggravated the inflationary pressure in March this year with the key economic barometer again crossing the 6.0-per cent mark.
In the same period (March) last year (2021), the point-to-point inflation was recorded 5.47 per cent, Bangladesh Bureau of Statistics (BBS) data showed Tuesday.
Meanwhile, the inflationary pressure in the previous month of February was recorded 6.17 per cent due to the higher CPI.
Analysts say the prices of essential products on the local market, coupled with global food-and oil-price rises following the Russia-Ukraine war, have been firing up inflation.
Although the inflationary pressure had maintained a lower trend in the last eight months of the current fiscal year (FY) 2021-22, the point-to-point rate in the past month (March) surged to 6.22 per cent, showing a 17-month high.
According to the BBS, the food inflation had been recorded at 6.34 per cent in the last month while the non-food one was 6.04 per cent.
Economists have cautioned the government on the higher inflation trend, suggesting "prudent monetary policy and demand-side management to tame the rising consumer price index".
Meanwhile, the country's development partners, including the World Bank, the International Monetary Fund and the Asian Development Bank, cautioned about the inflationary pressure in forecasting a further uplift of the CPI in Bangladesh.
"The government should go for controlling price and apply sound monetary mechanism to check the CPI…," they say in their suggestion.
Meanwhile, BBS unveiled the average inflation rate during April 2021 to March 2022 that was recorded at 5.75 per cent.
The inflation in the rural areas was recorded at 6.52 per cent, BBS data showed on Tuesday.
Out of the inflation rate, the food-inflation rate was recorded at 6.71 per cent in the villages while the non-food inflation was 6.15 per cent in March.
Meanwhile, the CPI in the urban areas had maintained a lower rate than in the rural areas.
According to the BBS, the point-to-point inflation in the urban areas was 5.69 per cent in last month.
Out of the average rate, the food inflation in the towns was recorded at 5.49 per cent while the noon-food inflation was 5.90 in March.